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Entries in Board of Directors (2)

Friday
Mar022012

Citigroup Chairman to Step Down in April

Chris Goodney/Bloomberg via Getty Images(NEW YORK) -- Citigroup’s Chairman of the Board who took the helms of the bank during the federal bailouts in 2009, is stepping down the bank confirmed on Friday.

Richard D. Parsons, a board member since 1996, will stay until the annual stockholders meeting in April. Parsons has held several positions including President and Chief Executive Officer at Time Warner as well as a White House aide under President Gerald Ford.

"Citi still faces a challenging environment, as do all the large banks, but the crisis is behind us. Given the strong position that Citi is in today, I have concluded that the time has come for me to take my leave. Together with the rest of the Board of Directors, I have complete confidence in the management team, the actions they have taken to strengthen Citi, and the course they have charted for the future of one of the world's truly great financial institutions,” said Parsons.

Two other board members will not seek re-election at the April meeting.

Copyright 2012 ABC News Radio

Thursday
Oct202011

Federal Reserve Board Rife with Conflict of Interest, GAO Report

iStockphoto/Thinkstock(WASHINGTON) -- The makeup of the Federal Reserve’s board of directors poses a conflict of interest and there is concern that several financial firms and corporations could have reaped monetary benefits from their executives’ close ties to the Fed, according to a new report released Wednesday by the Government Accountability Office.

In one case, the Federal Reserve consulted with General Electric on the creation of a commercial paper funding facility and then provided $16 billion in financing to the company while its chief executive, Jeffrey Immelt, served as a director on the board of the Federal Reserve Bank of New York.  Immelt is now President Obama’s “jobs czar.”

JP Morgan Chase could also have benefited from its chief executive Jamie Dimon’s position on the board of the Federal Reserve Bank of New York, according to the GAO.  The bank received emergency loans from the Federal Reserve at the same time it served as the clearinghouse for the Fed’s emergency lending program.

The Federal Reserve gave JP Morgan Chase an 18-month exemption from risk-based leverage and capital requirements in 2008, the same year that the Fed gave it $29 billion to acquire Bear Stearns, according to the GAO.

Similarly, Lehman Brothers’ chief executive Richard Fuld served on the board of the Federal Reserve Bank of New York at the same time one of its subsidiaries participated in the Fed’s emergency programs.

The Federal Reserve system has come under increased scrutiny in recent years, particularly for the structure of its board of directors.  Executives of banks and companies that are regulated by the Fed, and that receive emergency funding from it, often serve on the board.

“Without more complete documentation of the directors’ roles and responsibilities with regard to the supervision and regulation functions, as well as increased public disclosure on governance practices to enhance accountability and transparency, questions about Reserve Bank governance will remain,” the report states, adding that such affiliations “could create reputational risk for the Reserve Banks.”

The GAO did state that it “did not find evidence that Reserve Bank boards of directors participated directly in making any decisions about authorizing, setting the terms of, or approving a borrower’s participation in the emergency programs.”

Federal Reserve Chairman Ben Bernanke said in a letter to the GAO that the bank will consider ways to amend the bylaws to clearly explain the role of the directors.

Copyright 2011 ABC News Radio







ABC News Radio